What was the reported value of deferred revenue for 1 800 Packouts in 2023?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Deferred income tax assets (liabilities): | ||
| Intangible assets | $(5,284,048) | $(5,747,861) |
| Deferred costs | (153,662) | (16,114) |
| Fixed assets | (36,969) | (44,540) |
| Deferred revenue | 249,196 | 140,945 |
| NOL carryforwards | 287,562 | 166,613 |
| Other | (4,146) | (6,448) |
| $(4,942,067) | $(5,507,405) |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the reported value of deferred revenue in 2023 was $140,945.
Deferred revenue, also known as unearned revenue, represents payments received by 1 800 Packouts for goods or services that have not yet been provided. This often includes franchise fees collected upfront but recognized over the term of the franchise agreement. For a prospective franchisee, this indicates the amount of money 1 800 Packouts has already received for future obligations.
Understanding deferred revenue is crucial for assessing the financial health and stability of 1 800 Packouts. A significant deferred revenue balance suggests a strong pipeline of future revenue, while a declining balance might raise concerns about future performance. Franchisees should consider this figure in conjunction with other financial metrics to gain a comprehensive view of the company's financial standing.